Marketing’s Role in the Global Economy Chapter 4 Consumer Behavior Chapter One Marketing’s Role in the Global Economy For use only with Perreault and McCarthy texts. © 2003 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin—for use only with Essentials of Marketing

Consumer behavior??

Analyzing consumer behavior 6 Ws 1H and 7 Os 1.Who is in the target market? Occupants 2.What does the consumer buy? Objects 3.Why does the consumer buy? Objectives 4.Who participates in the buying? Organizations 5.When does the consumer buy? Occasions 6.Where does the consumer buy? Outlets 7.How does the consumer buy? Operations

Marketing stimulus / Other Stimulus Consumer behavior model Stimulus Marketing stimulus / Other Stimulus Cultural factors Social factors Psychological factors Buyer’s decision process Technological factors Personal factors Situational factors © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

Model of Buyer Behavior S R Marketing and Other Stimuli Marketing Product Price Place Promotion Other Economic Technological Political Cultural Buyer’s Black Box Buyer Characteristics Buyer Decision Process Buyer Responses Product Choice Brand Choice Purchase Timing Purchase Amount 5

Culture Subculture Social class - Nationality - Geographical Cultural factors Culture Subculture - Nationality - Geographical - Religious - Occupational - Racial - Age - Sex Social class © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing 6

Some (abbreviated) characteristics Characteristics and Relative Size of Different Social Class Groups in the United States Relative size Group Some (abbreviated) characteristics Upper-class Upper-middle class Lower-middle class* Upper-lower (“working”) class* Lower-lower 1.5% 12.5% 32% 38% 16% People from old wealthy families and socially prominent new rich... Small business people, teachers, office workers, technicians--the typical white collar workers... The blue collar workers--factory workers, skilled laborers, and service people…most earn good incomes... Unskilled laborers and people in very low status occupations * America’s “mass market” © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing 7

Social Class Upper Class - Upper-upper class (Old family) - Lower-upper class (New rich) Middle class - Upper-middle class - Lower-middle class (White-collar) Lower class - Upper-lower class (Blue-collar) - Lower-lower class © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing 8

Social (intra-personal) Influences on Consumers Reference groups Family Roles and status © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing 9

Factors Affecting Consumer Behavior: Social Groups Membership group Aspirational group Family (most important) Husband, wife, kids Influencer, buyer, user Social Factors Roles and Status 10

Psychological (intra-personal) Variables Motivation Perception Learning Attitudes and beliefs Personality Lifestyle (psychographics) © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

Possible Needs Motivating a Person to Some Action © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

Maslow’s Hierarchy of Needs

Selective comprehension 2. Perception Processes Selective explosure Selective attention Selective comprehension Selective retention © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing 14

3. The Learning Process © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

4. Beliefs 5.Attitudes © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing 16

6. Personality Brand personality 1. Sincerity 2. Excitement 3. Competence 4. Sophistication 5. Ruggedness Freud’s theory of motivation Id Ego Superego © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing 17

Personal factors Age Family lifecycle (FLC) Occupation Income Education Value and lifestyle © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing 18

Family Life Cycle Factors © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

Stages in Modern Family Life Cycles © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

Personal factors © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

Lifestyle Dimensions (and some related demographic dimensions) © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

Situational factors Physical surroundings Time Mood 23 © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing 23

Technological factors Web access Search capabilities Evaluation capabilities Purchase option Post purchase feedback © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing 24

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin A Model of Consumer Behavior This slide relates to material on p. 110. : Indicates place where slide “builds” to include the corresponding point. Summary Overview Economics and psychology are often cited as the main sources of marketing thought, but marketing also derives a great deal of knowledge about consumer behavior from sociology, anthropology, and communication theory. The basic model of consumer behavior shown here integrates many of these influences. Key Issues These influences include psychological variables, social influences, and events in the purchase situation. Psychological variables are things that are going on in the mind of the consumer that affect purchase. Attitudes, personality, learning processes, and perceptions are among these psychological influences. There are also influences from outside the consumer, such as social influences, that have to do with the associations that the buyer might have with other people. Culture, social class, and family influences are examples. Purchase situation factors also exist, such as the reason for the purchase, the time pressure involved, and the surroundings of the purchase. Discussion Question: How might your purchase of a product be different if you have little time to make your decision as opposed to having unlimited time? Marketing mixes and other stimuli also affect this process. Taken together, all the influences have an impact on the problem solving process that a consumer enters into when it’s determined that there is a purchase need. The outcome of this entire process might be a purchase, or it might be a decision not to purchase. : : : © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin : : :

Factors Affecting Consumer Behavior: Personal Personal Influences Age and Life Cycle Stage Occupation Personality & Self-Concept Economic Situation Activities Interests Lifestyle Identification Opinions Factors Affecting Consumer Behavior: Personal Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458 26

A Generic Model of Consumer Problem Solving

Decision Making as Problem Solving (cont.) Five basic stages or sub processes Problem recognition Search for alternative solutions Evaluation of alternatives Purchase Postpurchase use and reevaluation of chosen alternative Generic model often provides an imperfect account of actual problem-solving processes

An Expanded Model of the Consumer Problem-Solving Process © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing

Relation of Problem-Solving Process, Adoption Process, and Learning (given a problem) Problem-solving steps Becoming aware of or interested in the problem Gathering information about possible solutions Evaluating alternative solutions, perhaps trying some out Deciding on the appropriate solution Evaluating the decision Adoption process steps Awareness and interest Interest and evaluation Evaluation, maybe trial Decision Confirmation Learning steps Drive Cues Response Reinforcement © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin—for use only with Essentials of Marketing